The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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SOME THINK LONG-DISTANCE TRANSPORT IS INTENSIVE. WE THINK DIFFERENT. links, vehicles, personnel and fuel. BEUMER off ers an economical, effi cient and environmental alternative – of infrastructure development. The reduced noise and air pollution minimises environmental impact and improves makes a big diff erence to operational effi ciency and environmental protection. For more information, visit www.beumergroup.com VDMA 49 2017 • VDMA MINING SUPPLEMENT Strathaus explained. Business is robust with the United Kingdom, Italy and France. Demand exists in particular for machinery used in tunnel construction. At a minimum, similar turnover is assumed for the coming year. Schulte Strathaus also reported robust business with Turkey. In terms of raw materials, the country is increasingly investing in self- sufficiency to reinforce its economic foundations and to reduce its dependence on imports from abroad. This is relevant with respect to energy supply from coal as well as to manufacturing industrial metals. The second most important turnover region, with a share of 11%, is Africa, Northern Africa in particular. Since 2014, VDMA Mining exports to this region have almost tripled. The largest mar- kets are Egypt and Algeria. Sales are based first and foremost on machinery and plants related to infrastructure projects. "It's not about machines and equipment for the mining industry, but mainly for infra- structure projects, such as the four road and railway tunnels under- neath the new Suez Canal," Schulte Strathaus said. "Africa is devel- oping further and further, not least with massive financial and human support for China. For the coming year, however, we are expecting further moderate increases in exports." The third largest market is the U.S. Approximately 10% of exports make their way to the U.S. Sales are based mainly on processing technology and excavating machinery. Schulte Strathaus expresses doubt as to whether mines will continue to close and coal mining will continuously be reduced under the new administration. "President Trump has not only promised to preserve jobs in this sector, but to even create new ones," Schulte Strathaus said, and VDMA Mining assumes that its share of U.S. exports will grow in 2017. Latin America is VDMA Mining's fourth-largest export destination, accounting for about 7% of total exports. These mining operations have seen profits recover along with improving metals prices. "Higher liquidity and the prospect of further profits does not necessarily lead to more investment," Schulte Strathaus said. "Political stability is im- portant. This can be seen especially in Brazil and Venezuela, when compared to Peru, Mexico and Chile." In China and Russia, which ranked 6% and 5%, respectively, for VDMA Mining, the situation is quite different. German-Russian rela- tions in the mining sector can still be described as good and intact. After the imposition of sanctions, many of VDMA Mining's customers sought equipment and services from China. "That has not worked out as promised," Schulte Strathaus said. "For a number of companies, Russia continues to be of great importance as a sales market." This is also true for China, he explained. "There is, however, considerable uncertainty among our member companies about how the country will evolve," Schulte Strathaus said. "China must balance increased environmental protection and rising energy demand. The views of VDMA Mining is divided. On the one hand, they expect it to be better and on the other, they expect business to get worse. The latter sentiments mostly apply to underground mining, especially coal." It's different for open-cast mining. Here, good orders are still expected by VDMA Mining, but overall they expect a slight decrease in exports. Schulte Strathaus sees the increasing diversification among com- panies represented by VDMA Mining as a positive step. New products are increasingly brought into the market and new export regions are also being established. Meanwhile, virtually all the renowned manu- facturers that sold exclusively to coal are offering machinery for hard rock mining. This is resonating positively among purchasers on the whole. Schulte Strathaus announced a Europe-wide networking of companies. Thus, it should become possible among other things to bring new products into the market together, with greater impact. INFRASTRUCTURE- Transporting materials from remote locations has traditionally required signifi cant infrastructure investments in road or rail long-distance overland conveying. This gives you a dedicated, around-the-clock transport link at the fraction of the cost personnel safety. Add to that a high degree of design fl exi bility and customisation and you can see why overland conveying SOME THINK LONG-DISTANCE TRANSPORT IS INFRASTRUCTURE- INTENSIVE. WE THINK DIFFERENT. Transporting materials from remote locations has traditionally required signifi cant infrastructure investments in road or rail links, vehicles, personnel and fuel. BEUMER off ers an economical, effi cient and environmental alternative – long-distance overland conveying. This gives you a dedicated, around-the-clock transport link at the fraction of the cost of infrastructure development. The reduced noise and air pollution minimises environmental impact and improves personnel safety. Add to that a high degree of design fl exi bility and customisation and you can see why overland conveying makes a big diff erence to operational effi ciency and environmental protection. For more information, visit www.beumergroup.com

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